Optimism in the coordination of major central banks in the world has prompted investors to return to the markets with a sense of risk-taking as a necessity…
Robusta chart London September 2022 session on 19/07/2022
At the end of the session, the price of Robusta coffee on ICE Europe – London continued to recover. The September spot futures increased by 6 USD, to 1,998 USD/ton and the November delivery term increased by 7 USD, to 1,994 USD/ton, slight increases. Trading volume below average.
Similarly, the price of Arabica coffee on the ICE US floor – New York increased for the third consecutive session. September spot futures added 1.30 cents to 216.50 cents/lb and December futures added 1.00 cents to 222.20 cents/lb, significant gains. Trading volume on average.
The price of green coffee beans in the Central Highlands provinces increased by 100-200 VND, to range from 39,700 to 40,300 VND/kg.
USDX’s continued decline has supported most of the commodity markets’ recovery from last Thursday’s panic.
Coffee futures price continued the recovery momentum as USDX corrected down continuously in financial markets and investors were less worried. US Federal Reserve (Fed) will not “Eagle” as speculated after economic index reports showed inflation in many countries was higher than previously anticipated.
US stocks rebounded in a better mood as investors took risks following the report that Eurozone inflation rose to 8.6%, higher than the previous forecast of 8.1%, raising expectations. European Central Bank (ECB) will “Eagle” at the meeting this Thursday. Many experts believe that “The ECB interest rate hike created some relief in the market, which saw it as a more coordinated move by central banks to balance the world money markets.”
Expectations that central banks will work together to control inflation and prevent an economic downturn have pushed investors back into the commodity markets to buy up, supporting coffee futures prices to recover on both sides. floor.
Adding to the support was the report that ICE-managed inventories fell to a 22-year low.
English (giacaphe.com)
